The California Hydropower Reform Coalition has released the Media Advisory below to inform anglers, conservationists and the public of our effort to stop PG&E from using its bankruptcy proceeding to divest itself of any obligation under the California Environmental Quality Act to protect the public rivers and streams in California where it owns some 250 hydro dams and diversions.
The utility wants to transfer its hydro project to a subsidiary that would not be regulated by the California Public Utilities Commission. That subsidiary could be subject to different economic incentives, possibly resulting in changes to the way PG&E operates the hydro system, which in turn may affect stream flows, reservoir levels, and fisheries. PG&E is arguing that the bankruptcy court can preempt the states's authority to review these potential impacts under CEQA. If they prevail, the hydro transfer would occur without public review.
In addition to potentially changed hydro operations, PG&E's plan would change the ability to finance restoration measures at PG&E dams. Currently, facility upgrades needed to improve stream habitat or access can be passed on to the rate paying public through the CPUC process. Under the divestiture scenario, project upgrades of this sort would come out of the new company's hide which would most likely reduce their support for making such changes.
CHRC's legal team of Richard Roos-Collins (NHI) and Chuck Bonham (TU) have been engaged in the PG&E bankruptcy litigation for many months with the hope any transfer of the utility's hydro system does not occur at the expense of California's rivers and public trust resources.
FOR IMMEDIATE RELEASE
December 13, 2002
Contacts: Steve Wald, CHRC (510) 644-2900 ext. 105 Chuck Bonham, Trout Unlimited (510) 528-4164
BERKELEY, CA The California Hydropower Reform Coalition (CHRC) filed its trial brief today with the US Bankruptcy Court in San Francisco opposing the confirmation of Pacific Gas & Electric Company's plan of reorganization. PG&E has asked the Bankruptcy Court to override state environmental law so it can transfer the company's vast hydroelectric system to a new corporate entity not subject to California Public Utilities Commission (CPUC) oversight.
PG&E''s hydropower system, the largest under single private ownership in the country, includes 250 dams that control the flow of rivers from Mt. Shasta to Bakersfield. Expert witnesses for CHRC and the state have testified that PG&E''s plan could lead to changes in the way these dams operate after compliance with minimum regulatory requirements. These changes may affect fish and wildlife habitat, recreation opportunities, water supply, and flood control on rivers and reservoirs across the state. Yet PG&E's plan would prevent the CPUC from undertaking any proceeding to identify, prevent, or mitigate potential impacts.
"Chapter 11 reorganization is supposed to be about returning PG&E to solvency and paying back its creditors", said Chuck Bonham, attorney for the California Hydropower Reform Coalition. "But the public interest also counts in bankruptcy. PG&E's plan proposes sweeping changes to the ownership and management of public resources. The public's right to review and approve those changes must be affirmed."
Confirmation hearings on PG&E's plan begin Monday, December 16.
The California Hydropower Reform Coalition was formed by conservation, sportfishing, and river recreation organizations in 1997 to restore and enhance California rivers adversely affected by hydropower. The CHRC steering committee consists of American Rivers, American Whitewater, California Outdoors, California Sportfishing Protection Alliance, California Trout, Foothill Conservancy, Friends of the River, Natural Heritage Institute, and Trout Unlimited.
Stephen Wald, Director
California Hydropower Reform Coalition
2140 Shattuck Avenue, 5th Floor
Berkeley, CA 94704
510-644-2900 x105
510-644-4428 (fax)
swald@calhrc.org
www.calhrc.org